Heat pumps are some of the most energy-efficient solutions for keeping your home comfortable all year-round. Not only do they reduce your electricity costs, but they also free up valuable space as they’re much smaller than traditional heating and cooling systems.
In addition, right now the Inflation Reduction Act provides rebates of a maximum of $8,000, making it even more affordable than ever. What are you waiting for? Call the pros at Farris Heating & Air to request heat pump installation in Bartlesville.
What Is the Inflation Reduction Act
The Inflation Reduction Act of 2022 was written in hopes of reducing the effects of inflation on the country. One potential strategy is funding green technology and making efficient, eco-friendly home improvements more affordable.
You can earn both rebates and tax credits after purchasing energy-efficient equipment such as heat pumps. Now's the perfect time to go green!
How Will the Inflation Reduction Act Influence My Energy Costs
The Inflation Reduction Act keeps utility costs lower by making heat pumps and other energy-efficient home upgrades more affordable. It does that in the form of rebates and tax credits.
Regarding the Inflation Reduction Act heat pump rebates and tax credits, there are two ways to save money. Which program you use is dependent on your income.
The two programs available are:
- Inflation Reduction Act heat pump rebate
- Inflation Reduction Act heat pump tax credit
What Is the Inflation Reduction Act Heat Pump Rebate
The heat pump rebate available from the Inflation Reduction Act is for low-income and moderate-income homeowners. Your rebate can cover the entire cost of heat pump installation for low-income homeowners and up to 50% percent for moderate-income homeowners.
The rebate has a maximum of $8,000 for both low-income and moderate-income homeowners. It is a point-of-sale rebate, which means you subtract the rebate from the initial cost of a new heat pump.
The income conditions are:
- Low Income: Less than 80% of the area median income
- Moderate Income: 80-150% of the area median income
Unsure which income category applies to you or what the typical income for your community is? The nonprofit group Rewiring America has an online calculator you can use to find out. All you need is your ZIP Code and household income.
What Is the Inflation Reduction Act Heat Pump Tax Credit
For homeowners with incomes that exceed what qualifies for a heat pump rebate, there is an Inflation Reduction Act heat pump tax credit. Along with the ability to redeem the credit for up to 30 percent of the purchase or installation of a heat pump, the heat pump tax credit is worth a maximum of $2,000.
Unlike the rebate, which is accessible right at the time of purchase, the tax credit is applied as you file your taxes.* Hold onto the receipt, because the credit can be claimed the same year the heat pump was purchased.
*Consult with a tax professional for full details on how to apply
What Heat Pumps Qualify for the Inflation Reduction Act
The Inflation Reduction Act heat pump tax credits and rebates are only accessible after the purchase and installation of energy-efficient heat pump models.
At the very least, a heat pump must demonstrate ENERGY STAR® certification to be eligible for a rebate or tax credit. You can get all the details from our team at Farris Heating & Air.
How Do I Get the Inflation Reduction Act Rebate
For qualifying homeowners, the heat pump rebate in the Inflation Reduction Act is available when you purchase the heat pump. You get it promptly as it is subtracted from the price of purchase and installation of the heat pump. You don't have to send in a proof of purchase or wait for a rebate to come later.
The Inflation Reduction Act heat pump tax credit, on the other hand, must be received after you file taxes.* It reduces the total amount of money you owe to the IRS when you file your taxes.
*Consult with a tax professional for full details on how to apply
Call Your Local Pros at Farris Heating & Air for Details About the Inflation Reduction Act Heat Pump Rebate and Tax Credit
With the energy efficiency of a brand-new heat pump, you can save money and do your part for the environment thanks to tax credits and rebates from the Inflation Reduction Act. Farris Heating & Air can help with the specifics on these discount programs so you receive the greatest savings possible! We're ready to help make your next heat pump installation Bartlesville a stress-free experience.